Citigroup Lowers International Paper (NYSE:IP) Price Target to $44.00

Key Points

• Citigroup cut its price target for International Paper to $44 from $47 while maintaining a "buy" rating, implying roughly a 19.5% upside from the current share price.
• International Paper posted a quarterly earnings miss (EPS -$0.08 vs. $0.28 expected) and a negative net margin, even as revenue rose 53.1% year-over-year.
• Several insiders made notable purchases—most prominently the CEO buying 50,000 shares and a director buying 13,217 shares—indicating management confidence in the stock.

International Paper (NYSE:IP - Get Free Report) had its price objective lowered by stock analysts at Citigroup from $47.00 to $44.00 in a note issued to investors on Tuesday,MarketScreener reports. The firm currently has a "buy" rating on the basic materials company's stock. Citigroup's price objective would indicate a potential upside of 19.50% from the stock's current price.

A number of other brokerages have also recently issued reports on IP. Zacks Research upgraded shares of International Paper from a "strong sell" rating to a "hold" rating in a research report on Friday, March 13th. Truist Financial set a $48.00 price target on shares of International Paper in a research report on Thursday, February 26th. Jefferies Financial Group lifted their price objective on International Paper from $47.00 to $48.00 and gave the stock a "buy" rating in a research report on Thursday, January 22nd. UBS Group reduced their target price on International Paper from $44.00 to $40.00 and set a "neutral" rating on the stock in a research note on Friday. Finally, Argus lowered their target price on International Paper from $55.00 to $50.00 and set a "buy" rating on the stock in a report on Monday, December 22nd. Eight research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, International Paper has an average rating of "Moderate Buy" and a consensus target price of $46.31.

International Paper Stock Performance

Shares of IP stock opened at $36.82 on Tuesday. The stock has a fifty day moving average price of $40.56 and a 200 day moving average price of $41.11. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.28. The stock has a market cap of $19.50 billion, a PE ratio of -5.51 and a beta of 1.14. International Paper has a 1 year low of $33.57 and a 1 year high of $56.13.

International Paper (NYSE:IP - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The basic materials company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.36). International Paper had a negative net margin of 14.12% and a negative return on equity of 0.35%. The firm had revenue of $6.01 billion during the quarter, compared to analysts' expectations of $5.90 billion. During the same quarter in the prior year, the business earned ($0.02) EPS. The company's quarterly revenue was up 53.1% compared to the same quarter last year. Sell-side analysts forecast that International Paper will post 2.77 earnings per share for the current fiscal year.

Insider Transactions at International Paper

In other news, Director Anders Gustafsson acquired 13,217 shares of the business's stock in a transaction dated Thursday, March 12th. The stock was acquired at an average price of $37.83 per share, with a total value of $499,999.11. Following the completion of the transaction, the director directly owned 26,092 shares in the company, valued at approximately $987,060.36. This represents a 102.66% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Andrew K. Silvernail acquired 50,000 shares of International Paper stock in a transaction that occurred on Friday, January 30th. The shares were purchased at an average cost of $39.98 per share, for a total transaction of $1,999,000.00. Following the purchase, the chief executive officer directly owned 50,000 shares of the company's stock, valued at approximately $1,999,000. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have bought 76,092 shares of company stock valued at $2,999,064. Insiders own 0.21% of the company's stock.

Institutional Investors Weigh In On International Paper

Hedge funds and other institutional investors have recently made changes to their positions in the business. McIlrath & Eck LLC boosted its position in shares of International Paper by 452.6% in the fourth quarter. McIlrath & Eck LLC now owns 641 shares of the basic materials company's stock worth $25,000 after acquiring an additional 525 shares during the last quarter. MV Capital Management Inc. purchased a new position in International Paper during the fourth quarter worth approximately $25,000. Sound Income Strategies LLC boosted its holdings in shares of International Paper by 94.0% in the 4th quarter. Sound Income Strategies LLC now owns 710 shares of the basic materials company's stock valued at $31,000 after purchasing an additional 344 shares during the last quarter. DV Equities LLC acquired a new position in shares of International Paper in the 4th quarter valued at $29,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of International Paper during the 3rd quarter valued at $36,000. Hedge funds and other institutional investors own 81.95% of the company's stock.

About International Paper

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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